Summary
This Form 8-K filing by D. R. Horton, Inc. (DHI) on September 28, 2006, reports a material amendment to its credit facility related to its mortgage subsidiary, DHI Mortgage Company, Ltd. Specifically, on September 22, 2006, the company entered into an "Agreement to Increase Commitment Amount" for its mortgage warehouse loan facility. This amendment temporarily increases the total commitment amount to $750 million from September 22, 2006, until November 6, 2006, after which it reverts to $540 million. The facility is secured by mortgage loans held for sale and is not guaranteed by the parent company or its note guarantors. This temporary increase in borrowing capacity suggests a strategic move to manage liquidity or fund operations during a specific period, likely to accommodate seasonal demand or upcoming project needs.
Key Highlights
- 1DHI Mortgage Company, Ltd., a subsidiary of D.R. Horton, Inc., entered into an amendment to its credit facility.
- 2The mortgage warehouse loan facility's commitment amount was temporarily increased to $750 million.
- 3The increased commitment is effective from September 22, 2006, through November 6, 2006.
- 4After November 6, 2006, the commitment amount will revert to $540 million.
- 5The credit facility is secured by mortgage loans held for sale.
- 6The facility is not guaranteed by D.R. Horton, Inc. or its note guarantors.